The court outlined the procedure under the SARFAESI Act regarding loan recovery and upheld the bank's actions.

JUDGMENT

(Dated this the 26th day of February, 2026)

The petitioner and his wife availed a housing loan of Rs.8 lakhs from the 2^nd respondent bank. Due to non-repayment of the loan amount, the respondent initiated proceedings under the SARFAESI Act, 2002 , by issuing Ext.P1 notice dated 29.03.2025, followed by Ext.P3 notice issued by the Advocate Commissioner dated 08.01.2026. Aggrieved by the same, the petitioner filed this writ petition.

2. On 20.01.2026, this Court granted an interim order deferring the coercive steps against the petitioner, on condition that the petitioner shall remit an amount of Rs.20,000/- within one month. It is submitted that the said interim order has been complied with.

3. The learned Standing Counsel for the Bank, on instructions, submits that the overdue amount as on date is Rs.79,278/-. A statement was filed by the respondent stating that this Court cannot grant the relief sought as it is covered by a judgment of the Apex court in South Indian Bank Ltd v.

Naveen Mathew Philip [ (2023) 17 SCC 311 ]. The petitioner was sanctioned an amount of Rs.8 lakhs on 28.07.2007; outstanding amount is ₹3,86,218/- ; the monthly EMI to be paid by the petitioner is ₹10,314/- and the remaining term of the loan is 33 months. Therefore, the respondent prays that this writ petition may be dismissed.

4. Having heard the learned counsel on both sides, and taking note of the fact that the overdue amount is Rs.79,278/- and as the petitioner has complied with the interim order, I deem it appropriate to dispose of this writ petition with the following directions:

a) The petitioner shall remit the overdue amount of Rs.79,278/- (Rupees seventy nine thousand two hundred and seventy eight only) together with any accrued interest, cost and allied charges, in three (3) equated monthly installments, starting from 20.03.2026 and the subsequent installments shall be paid on or before 20^th of every succeeding months.

b) The petitioner shall continue to pay the regular EMIs/installments along with the installments as directed above.

c) In the event of default of any one installment, the respondent Bank shall be entitled to proceed for recovery, in accordance with law.

d) All coercive proceedings shall be kept in abeyance to enable the petitioner to repay the entire amount as directed above.

Sd/-

BASANT BALAJI JUDGE